Australia Market climbs 0.4%

The Australian share market finished session higher on Monday, 14 February 2022, as strength in financials, energy, materials, and tech stocks offset losses elsewhere. At closing bell, the benchmark S&P/ASX200 added 26.64 points, or 0.37%, to 7,243.91. The broader All Ordinaries index rose 19.30 points, or 0.36%, to 7,535.11.

The top performing stocks in S&P/ASX200 index were BEACH ENERGY LIMITED and REGIS RESOURCES LIMITED, up 9.43% and 8.15% respectively. The bottom performing stocks in this index were NOVONIX and IMUGENE, down 10.7% and 9.5%, respectively.

Despite rally in the market, participants risk sentiments were subdued amid worries over a potential invasion of Ukraine by Russia as well as the prospect of Fed aggressive policy tightening.

The U.S. national security adviser Jake Sullivan said on Friday that a Russian invasion of Ukraine could take place "any day now," including during the Beijing Winter Olympics taking place through Sunday.

The market participants turned cautious that the U.S. Federal Reserve would take an aggressive step after government data showed inflation increased at 7.5% in January from a year earlier, marking its steepest rise in nearly 40 years.

Energy stocks climbed up on tracking surge in crude oil prices on supply worries. Crude oil prices were higher in the Asia trading hours, with international benchmark Brent crude futures jumping 1.15% to $95.53 per barrel. U.S. crude futures surged 1.28% to $94.29 per barrel. Beach Energy jumped 9.4% after its first-half earnings beat forecasts. Santos gained 4%, Woodside Petroleum was up 3.6%, and Worley gained 2.3%. Whitehaven coal gained 6.8%.

Banks and financials went up on hopes that the Reserve Bank of Australia would start lifting rates in the July to September quarter. Among the banks, Westpac gained 4.8% and NAB jumped 2%. Commonwealth Bank gained 1.5% and ANZ Bank gained 1.4%.

Among individual stocks, Carsales.com shares gained 0.6% after reporting a 22% increase in post-tax profit.

Aurizon shares fell 0.6% after reporting flat half-year results and reducing its dividend to preserve cash ahead of a large acquisition.

Boral fell 1.9% after sending out a Valentine's Day gift to shareholders of $3 billion in capital distribution, as well as announcing a billion dollar half-year profit thanks to divestments.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.048 against an earlier low of 95.906. The Australian dollar was at $0.7114, off levels above $0.72 seen last week.

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